Important Information & Disclosures (TASA)

As a tax agent, we have obligations, including to you, as a client or prospective client of this practice, under the taxation laws (including the Tax Agent Services Act 2009 (TASA) and the Code of Professional Conduct contained within that Act).

Under section 45 of the Tax Agent Services (Code of Professional Conduct) Determination 2024, we must advise all current and prospective clients of certain information. Such information is also set out in the Tax Practitioners Board’s factsheet, Information for Clients.

This webpage is designed to provide you will such information and relevant disclosures.

Information about the TPG register

The Tax Practitioners Board (TPB) is responsible for the registration and regulation of tax practitioners and for ensuring their compliance with the TASA. As part of this role, the TPB maintains details of registered, suspended and deregistered tax practitioners. To check that we are registered, search the TPB Register at www.tpb.gov.au/public-register using either of the following details:

Practitioner name – Roy & Carswell Pty Limited

Practitioner registration number – 25315886

How to make a complaint

If you have any complaints or disputes in relation to our services we ask that you please contact Michael Carswell on (02) 9299 3299 or michaelc@roycarswell.com.au in the first instance. We will endeavour to resolve any issues respectfully and as quickly as possible.

If we cannot resolve the issue or you are not satisfied with how we have handled your complaint or with the outcome, you may be able to escalate the matter to the TPB. Complaints to the TPB must be made in writing using its online form, which is available at myprofile.tpb.gov.au/complaints/

Prescribed events within the last 5 years

If certain prescribed events have occurred involving a tax practitioner within the last 5 years, we must advise you of this at the time you make enquiries to engage or re-engage us to provide tax agent services. Otherwise, we must notify you within 30 days of becoming aware of the matter. 

Prescribed events include if a tax practitioner was:

• suspended or terminated by the TPB
• an undischarged bankrupt or went into external administration
• convicted of a serious taxation offence or an offence involving fraud or dishonesty
• serving or sentenced to a term of imprisonment in Australia for 6 months 

There are currently no matters that we are required to report.

Registration subject to conditions

We must advise you if our tax agent registration is subject to any conditions.

Our tax agent registration is not subject to any conditions.

Your rights and obligations under the tax laws

Set out below is information on the main areas of the taxation system as it applies to taxpayers generally. Not all these matters will apply to your tax affairs. If you have any concerns or issues with any of the matters discussed below, please feel free to contact us. 

Operation of the self-assessment system: 

Australia’s tax system operates on a self-assessment basis. This means that when your income tax return is lodged, the Australian Taxation Office (ATO) accepts the information provided in the return at face value and issues you with an assessment notice based on that information. 

However, this does not mean the assessment is final as the ATO can conduct a review or audit of the information provided in the return at a later time, subject to the time limits discussed below. 

Importantly, as a taxpayer, you have an obligation to comply with the taxation laws. If you do not meet your obligations under the taxation laws, the ATO may impose administrative penalties (fines), apply interest charges, seek criminal prosecutions (in some cases) or initiate debt recovery.

Commissioner’s ability to amend an assessment: 

While the ATO accepts the information lodged in your return at face value, it can amend the assessment if the ATO finds it to be incorrect. 

For most individuals not carrying on a business, the ATO can amend an assessment within two years after the individual receives their notice of assessment. 

If the ATO amends an assessment, this will potentially involve increased taxes, penalties and an interest charge. If you discover an error in the information declared in the return, lower penalties generally apply for making a voluntary disclosure. 

Note that there are no time limits on the ATO amending an assessment where it believes there has been fraud or evasion. 

Obligation to keep records: 

The tax laws specifically require taxpayers to keep records that properly explain the transactions they have entered into. 

Individuals claiming deductions for work-related expenses are subject to the substantiation rules in the tax laws. These require taxpayers to keep receipts, invoices etc., of the expenses they incur. 

Where the expenses relate to a taxpayer travelling interstate or overseas, a travel diary may also need to be kept. Where the expense relates to a motor vehicle, a record of the journeys taken such as a logbook may need to be kept. 

A failure to keep the appropriate records can lead to the ATO denying a particular deduction which may involve the imposition of penalties and interest. Substantiation records must be retained for five years. 

Obligation to provide complete and accurate records: 

For our practice to be able to lodge returns on your behalf, it is your responsibility to provide us with truthful, complete and accurate records. Furthermore, in order to lodge your return on time, we will require you to provide us with the relevant information as and when requested. 

Where you are unable to provide us with complete and accurate records, we may be unable to prepare and lodge your return. Tax agents are subject to a Code of Professional Conduct contained in the TASA, which prevents us from acting for a client where insufficient records or information exist that allow us to determine the amount of a client’s income or deductions.

We also reserve the right to question any claims for deductions or credits that in our reasonable judgment might be considered as being excessive, and we may ask for more substantiation or records to prove that such a claim is allowable under the law. 

If we believe that a claim is excessive and it cannot be substantiated, we reserve the right not to include such a claim in your income tax returns, but you will have the right to lodge an objection after receiving your notice of assessment. 

Records for clients operating in the cash economy:

Employees who are paid cash in hand may be at risk of (amongst other things) being underpaid, or of their employers not withholding the correct amount of tax from their pay and remitting this to the ATO. This is particularly the case if their employer is operating in the cash economy (essentially, outside the income tax system).

Furthermore, if the ATO considers a taxpayer has not declared all of their wages in their tax return, and they have inadequate documentation to demonstrate their earnings, the ATO may assess the taxpayer for additional income tax (plus penalties and interest). If this occurs, it is the responsibility of the taxpayer to demonstrate that the assessment is excessive (i.e., the taxpayer did not earn that much income) and identify their correct tax position. 

Therefore, employees who are paid in cash are urged to have a robust and reliable system for recording their earnings. Please contact us if you need assistance with this. 

Right to seek a Private Binding Ruling: 

When preparing your return, we may identify one or more issues that are not clear under the tax laws. Where we have pointed out such issues to you, you have a right to request a Private Binding Ruling from the ATO. 

The ATO will provide you with a ruling setting out its view on the proper tax treatment of the issue requested in the Private Binding Ruling. 

Objecting against an assessment: 

If the ATO issues you with an assessment that you do not agree with, you have the right to lodge an objection against that assessment, generally within two years from the time the original assessment was received. 

Where the ATO issues an amended assessment, the period for objecting is generally the greater of 60 days from the time the amended assessment is received and two years from the time the original assessment was received. 

If you remain dissatisfied with the outcome of the objection, you have the right to have the matter reviewed by the Administrative Review Tribunal or appeal the matter to the Federal Court. 

Onus of proof falls on the taxpayer:

It is important to be aware that in any disputed assessment before the court or the Administrative Review Tribunal (whether initiated by the taxpayer or by the ATO), the onus of proof is placed on the taxpayer. 

 

In other words, if the Commissioner asserts that your income should include a certain amount or that a deduction claimed in a return is not allowed, it will be up to you to establish that the Commissioner’s view is incorrect and the correct treatment. 

Safe harbour protection:

As the client of a registered tax agent, under the taxation laws, you have a statutory ‘safe harbour’ exemption from penalties imposed by the ATO in certain circumstances. 

To ensure you are eligible to benefit from the safe harbour, it is a requirement that you provide us with all relevant tax information. This includes any records, or documents we request from you plus any other information relevant to the preparation of your tax return. The information provided must be truthful, complete and accurate. It is equally important that you provide us with this information by the time it is requested to allow the return to be lodged by its due date. 

A taxpayer who is eligible for safe harbour protection will not be subject to any penalties for errors identified in their tax return, although the tax and interest charges will still apply. 

Your tax practitioner’s obligations

As your tax practitioner, we are required to:

• act lawfully in your best interests and with honesty and integrity in the performance of our duties;
• uphold and promote the ethical standards of the profession;
• manage any conflicts of interest;
• take reasonable care to ascertain your state of affairs and apply tax laws correctly;
• keep your information confidential unless there is a legal duty to disclose;
• provide services competently;
• not knowingly obstruct the administration of the tax laws;
• advise you of your rights and obligations under the taxation laws (refer above);
• account to you for money or other property on trust;
• not make false or misleading statements to the TPB or the ATO, and in some cases, withdraw our engagement with you and notify the TPB or ATO of certain matters; 
• address any false or misleading statements we are responsible for;
• engage with clients to address other false or misleading statements, exploring options to correct;
• keep proper records (including records of tax agent services provided); 
• keep you informed of certain matters so you can make informed decisions.

If we fail to meet our obligations:

• our registration can be suspended or terminated, meaning we cannot practice;
• we could receive a caution or orders from the TPB – for example, undertaking education or working under the supervision of another registered tax practitioner;
• have fines imposed on us by the Federal Court;
• your tax and superannuation matters may not be accurate;
• you may be subject to enquiries or audits;
• any tax shortfalls may attract penalties and interest;
• you may have litigation options to review decisions and recover debts;
• in the case of fraud or criminality, penalties may lead to prosecutions.